Mill disruption underpins 'disappointing' Q1 results for Central Rand Gold

Central Rand Gold, the gold exploration and production company operating on the southern outskirts of Johannesburg, has unveiled 'disappointing' first quarter results reflecting the challenges of erratic milling availability surrounding its Bateman Mill.

Central Rand Gold, the gold exploration and production company operating on the southern outskirts of Johannesburg, has unveiled 'disappointing' first quarter results reflecting the challenges of erratic milling availability surrounding its Bateman Mill.

In a financial update issued on Monday, the company reported that 36,483 dry tonnes were processed in the first quarter of 2013 compared to 44,081 dry tonnes processed in the fourth quarter of 2012.

It said that the challenges of erratic milling availability surrounding the Bateman Mill had continued throughout January and February, with several gearbox replacements being required as well as major modifications to the mill drive train.

The company said that the modifications appeared to bear fruit in March, with production stabilising at 15,645 dry tonnes, arising from a solid 85% plant availability. However in April, a further two weeks were lost on the Bateman Mill due to further gearbox failures.

The Bateman Mill was brought back online on April 13th, with larger improved gearboxes and a strengthened drive train.

The company is currently in talks with an external toll processing company with a view to exploring the possibility of toll treating the majority of the company' mine production at commercial rates more closely aligned to the existing internal cost of production.

"The option to outsource gold production provides operating cot protection; access to additional metallurgical production capacity as well as ensuring a more stable production profile," the company stated.

Central Rand Gold's share price was down 11.49% to 0.38p at 11:32 on Monday.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020